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News Release

China

Shoptalk-a JLL retail newsletter, November 2014


China Summary

  • China is moving into its third generation of outlet malls, characterized by attractive scenery, tourist attractions, and experiential features such as art galleries, playgrounds, and riverside dining. More outlets are expected to offer these features.
  • Today's consumer is increasingly price-savvy as a result of rising international travel and extensive exposure to online shopping.
  • Consumers' top motivations in going to a shopping center are dining and entertainment, and most other purchases are increasingly done on impulse.  Observation of shopping bags in China's malls reveal that most physical purchases are limited to a handful of large brands; smaller brands are rarely seen.
  • The key to 'experience retail' is not about setting up physical activities such as water parks, which leave people too fatigued to make other purchases. New concepts of offline-to-online shopping models are appearing where consumers experience the products and then purchase online in-store.
  • Department store closures continue as consumers shift to other retail formats and sales decline; Beijing recorded new cases and this trend is expected to continue. Department store markets are consolidating into a small group of two or three strong players in each city.
  • Korean brands are expanding rapidly throughout China, with the likes of Caffe Benne and Innisfree adding many additional stores.
  • Retailer developers trying to secure a first-mover advantage in the emerging urban peripheries of Tier 2 and 3 markets are finding the process tougher than expected.

Retailer Movements

Erdos 1436

452 sqm

Beijing Kerry Centre, Beijing

Opening: May 2015

Homme Inn

4,356 sqm

Rongxing International Building, Shenyang

Opening: December 2014

 

HSBC

800 sqm

Qianhai Enterprise Dream Park, Shenzhen

Opening: December 2014

 

 

Kingsport

1,484 sqm

Westgate Mall, Shanghai

Opening: Q1 2015

King of Party

4,000 sqm

Crystal Galleria, Shanghai

Opening: 2015

Momohoney

58 sqm

IKEA Shopping Center, Wuhan

Opening: Q2 2014

TOPFEELING

432 sqm

Wanning Outlets, Hainan

Opening: October 2014

Yu Xin Hong Ji

11,000 sqm

Yi Cai New World, Guangzhou

Opening: February 2015

 


Projects of the Quarter

Picture1.png   Forum 66, Shenyang

   Alice Law, +86 10 5922 1116  alice.law@ap.jll.com
   Tony Li, +86 24 3109 1300  yanjun.li@ap.jll.com

​​Picture2.png
   Kerry Central, Hangzhou

   Rebecca Tibbott,
  +86 21 6133 5314  rebecca.tibbott@ap.jll.com

Picture3.png
  The MixC, Xi'an
 
   Min Qian, +86 29 8932 9812  min.qian@ap.jll.com
Picture4.png
    Xianglong Tiandi Square, Dongguan

   Rytina Wang,
   +86 20 2338 8049  rytina.wang@ap.jll.com

   Crystal Situ, +86 20 2338 8047  crystal.situ@ap.jll.com